India will not purchase Russian LNG subject to sanctions—media reports

12 May 14:12

India has refused to purchase Russian liquefied natural gas (LNG) subject to U.S. sanctions, despite a global fuel shortage caused by the escalating situation in the Middle East. Reuters reports this, citing two informed sources, according to "Komersant Ukrainian".

According to the agency, New Delhi is trying to strike a balance between its energy needs and the risks of violating the sanctions regime. Reuters’ sources note that LNG shipments are harder to conceal than oil cargoes, as gas carriers are easily tracked via satellite systems, which creates additional risks for buyers.

“India informed Russian Deputy Energy Minister Pavel Sorokin of its decision during his visit on April 30. At that time, he met with Indian officials, including Minister of Petroleum and Natural Gas Hardeep Singh Puri. According to sources, Sorokin may visit India again in June to continue negotiations,” the agency reports.

Reuters reports that the refusal came after the tanker Kunpeng, carrying a shipment of Russian LNG, had already set sail for India. The vessel is transporting cargo from the sanctioned Russian Portovaya plant in the Baltic Sea, although the fuel is listed as non-Russian in the documents.

“In mid-April, the tanker listed the Dhekej terminal in western India as its destination, but as of May 11, it was near Singapore with no further route specified,” Reuters writes.

The agency notes that the situation demonstrates Russia’s limited ability to redirect LNG exports to new markets following the tightening of U.S. sanctions in early 2025 due to the war against Ukraine. In particular, the Portovaya LNG and Arctic LNG 2 projects are subject to U.S. restrictions.

“At the same time, India continues to actively purchase Russian oil. This was facilitated by a temporary easing of U.S. sanctions, introduced amid the energy crisis following the start of the U.S. and Israeli war against Iran in late February,” the agency notes.

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Reuters sources also reported that India is ready to purchase Russian LNG that is not subject to sanctions, but most of these volumes have already been contracted for European buyers. China remains one of the main importers of both sanctioned and non-sanctioned Russian LNG.

As a reminder, amid supply disruptions through the Strait of Hormuz, Indian Prime Minister Narendra Modi urged citizens to conserve fuel and foreign exchange—specifically by working remotely, traveling abroad less, and reducing imports of gold and cooking oils.

India is one of the world’s largest importers of energy resources and, in particular, is actively purchasing Russian oil. The U.S. has temporarily eased sanctions on its import to curb the sharp rise in global energy prices following the halt of transit through the Strait of Hormuz. At the same time, India remains the largest buyer of Russian crude oil—from February 2022 to January 2026, the total volume of energy imports from Russia reached approximately €144 billion. Direct shipments of Russian LNG to the country effectively ceased after the start of the full-scale war.

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